Assessee prevails in appeal for 2017-18 assessment year, Tribunal accepts evidence for agricultural income and exempt income.

The assessee's appeal was allowed by the Tribunal regarding the assessment year 2017-18. The dispute over agricultural income derived from the sale of timber was resolved in favor of the assessee, as evidence of the sale was provided. Additionally, the additional amount shown as exempt income from a partnership firm was accepted. The Tribunal found the assessee's explanation for the agricultural income credible, leading to the dismissal of the Assessing Officer's additions. The judgment was pronounced on June 27, 2023.

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Issues involved:
The judgment involves the determination of agricultural income and other income for the assessment year 2017-18.

Agricultural Income Issue:
The assessee claimed Rs. 4 lakhs as agricultural income, derived from the sale of timber from trees grown on his land. The Assessing Officer disagreed, stating the land was in an urban area, thus no agricultural income was possible. The CIT(A) dismissed the plea, citing lack of evidence of timber sale to support the claimed agricultural income.

Other Income Issue:
Regarding an additional amount of Rs. 18,702 shown as exempt income from a partnership firm, the CIT(A) allowed the appeal and deleted the addition made by the Assessing Officer.

The CIT(A) acknowledged the assessee's consistent reporting of agricultural income in previous years and accepted that teak wood trees were planted on the land. The CIT(A) noted the absence of evidence for the sale of teak wood trees or other agricultural produce. However, considering the practicality of an agriculturist selling harvested crops to earn a living, the CIT(A) found it reasonable to believe the assessee's claim of agricultural income.

The ITO confirmed the presence of cut trees on the land, and the assessee provided permission from the Tahsildar for cutting the trees, along with evidence of the sale. The Tribunal concluded that the assessee adequately explained the agricultural income, thus no addition was necessary.

In conclusion, the appeal of the assessee was allowed, and the judgment was pronounced on June 27, 2023.

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